SFR -6.89%: Back onlne today after making a massive acquisition known as MATSA which is a Spanish copper asset they’ve paid $2.6bn for. When I say massive I’m not exaggerating, the acquisition consideration was ~2x SFR’s market capitalisation and is clearly hoped to be a company transforming deal. The deal is to be funded by a combination of debt & equity, with the equity raising split into a $120 million placement to AustralianSuper, a $165 million institutional placement and a $963 million one-for-one non-renounceable rights issue. The placement and rights issue were at $5.40 a share, which was a 13.2 per cent discount to the last close, and ~7% discount to TERP ($5.76). AustralianSuper also committed to sub-underwrite the retail portion of the entitlement offer to another $150 million. The company lined up another $1.1 billion in fresh debt, including a $200 million facility from ANZ Banking Group and a $US650 million ($897 million) loan from a bunch of banks including Macquarie, Citi, Natixis and SocGen.
We like Copper but we like Oz Minerals (OZL) more than SFR
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